Feeds

eMachines to miss sales targets

Lingering doom and gloom

  • alert
  • submit to reddit

Internet Security Threat Report 2014

eMachines has joined the barrage of revenue warnings spewing from the IT industry this festive season.

The Korean-owned, US-operated PC maker today said it expected sales of between $120 million and $130 million for the fourth quarter ending December 30 - below those of the previous year's Q4. It also warned that losses would be larger than feared - around 19-23 cents loss per share.

It blamed "continued economic weakening, a significant decrease in consumer demand for personal computers, a general slowdown in retail sales, and a channel-wide over supply of personal computer inventory".

The loss will also take into account discounts and extra rebates offered to lure customers into buying its products - the company makes stripped-down machines for Internet access aimed generally at the cheaper end of the market.

eMachines said the loss would also include inventory charges, adding that it didn't expect to see sales pick up before the second half of 2001.

Gross margin is expected to get back to traditional levels in Q2 as the company's inventory normalizes by the end of the first quarter.

Things must be bad with inventory levels - eMachines was one of the first vendors to spot the downward shift in the US PC market and had already cut Q4 PC production by 20 per cent in anticipation. ®

Related Stories

eMachines slashes PC production
eMachines turns up in Europe with Dixons
There is such a thing as a free PC
Xmas panic means PC fire sales
Compaq joins profit warning parade
Gateway in PC price war gloom

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.